| November 10, 2008 |
| High River Gold Re-Starts Mill at Taparko-Bouroum and Provides Update on Strategic Process, Board, and Operations |
TORONTO, ONTARIO--(Marketwire - Nov. 10, 2008) - High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) announces:
- Resumption of milling at Taparko-Bouroum
- Strategic alternatives process continues to work with High River's
lenders and potential parties to a financing or business transaction
- Two board members resign from the Company
- Berezitovy reports production of 7,800 gold ounces in October
- Zun-Holba and Irokinda reports production of 109,592 gold ounces
Q3/2008 year-to-date
Taparko-Bouroum Gold Mine
Further to its announcement of October 6, 2008, after a prolonged shutdown due to the failure of the ball mill driveline, the Company is pleased to report that the mill has been restarted following the installation of a new gear box. The Company has installed vibration monitoring equipment in order to detect any faults in the mill that may occur in the future. In the event vibration reoccurs, the mill may need to be shutdown for further remedial actions. In 2009, at the latest, the Company will study whether a further shutdown and further work are required to ensure that the mill continues to be in good operating condition.
Gold production at Taparko in November is forecast at 5,000 ounces, increasing to 7,000 ounces in December. A stockpile of 200,000 tonnes of ore is available and will be used to feed the process plant. Mining operations are scheduled to resume by January 2009. Year-to-date, Taparko-Bouroum has produced 22,967 gold ounces.
Strategic Alternatives
As reported on October 31, 2008, the Company continues to have discussions with its principal lenders in relation to its current financial situation. The ability of the Company to continue as a going concern remains dependent upon these discussions and/or forbearance from its lenders, accommodations from trade creditors, establishing steady production at its two new mines and obtaining additional financings. There can be no assurance that the lenders will cooperate with the Company, that trade creditors will provide accommodations, that steady production can be achieved or that a financing or other transaction can be completed on terms acceptable to the Company.
The Special Committee of the Board of Directors continues to work with a number of potential parties with respect to a sale or financing transaction for some or all of the assets of the Company. Indicative proposals for the entire Company and for specific assets have been received. At the present time, there is no certainty that any financing or sale of one or more of the Company's projects, or the Company itself, will be completed, or that any of the indicative proposals will proceed.
Changes to the Board of Directors
Mark Rachovides and Murray Sinclair have advised the Company that they are resigning from the Board of Directors. The Company is grateful for their contributions.
Board members Terrence Lyons, David Mosher, Valery Dmitriev, John Crow and Stephen Polakoff continue to provide leadership at the Company.
Operations Update
The Russian subsidiaries of the Company have provided High River with the following update on their activities:
Berezitovy Gold Mine - After reporting it had achieved commercial production effective October 1, 2008, Berezitovy has advised the Company that its performance continues to improve. Berezitovy gold production totaled 28,202 ounces for the first three quarters of 2008. During October, the operation reported production of 7,800 ounces of gold from 99,600 tonnes processed grading 2.8 g/tonne. Process plant recovery of 88% during October was in line with the feasibility study estimate.
Zun-Holba and Irokinda Gold Mines - With total reported production of 109,592 gold ounces during the 9 months ending September 30, 2008, these two underground gold mines are on track to meet budgeted 2008 whole year production of 145,000 gold ounces. During the first three quarters of this year, Zun-Holba produced 52,440 gold ounces from 204,000 tonnes grading 8.4 g/tonne, while Irokinda production totaled 55,647 gold ounces from 215,000 tonnes grading 8.4 g/tonne.
About High River
High River is a gold company with interests in producing mines, mines under development, and advanced exploration projects in Burkina Faso and Russia.
FORWARD LOOKING STATEMENTS
This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes", and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, High River cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause High River's actual results, event, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although High River has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. Any forward-looking statements are made as of the date of this release, and High River assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law. | |